Airbnb on the Rocks: Rapid Developments in Greece as Owners Scramble

Athens Tightens its Grip on Short-term Rentals

The Airbnb landscape in Greece is undergoing a seismic shift following announcements by Prime Minister Kyriakos Mitsotakis. Property owners in Athens have until the end of December 2024 to obtain a Property Registration Number (AMA) for short-term rentals.

New Licenses Frozen in Central Athens

As of January 1, 2025, new licenses for short-term rentals will be frozen in specific areas of Athens grappling with an acute housing crisis. This measure, aligning with Mitsotakis's announcement, aims to curb the depletion of long-term rental stock in areas popular with short-term rental platforms like Airbnb.

100-Day Grace Period for Existing Projects

The December 2024 deadline provides a 100-day window for property owners currently renovating properties with the intention of short-term rental to complete their projects and avoid financial losses.

Which Areas Are Affected?

The ban primarily targets central Athens neighborhoods saturated with short-term rentals, such as:

• Neos Kosmos
• Pagkrati
• Kerameikos
• Metaxourgeio
• Historic Center (Syntagma Square, Omonia Square, Exarcheia, Kypseli, Herodion, Panepistimio, Stadiou, Patission, Alexandras Avenue, etc.)

Estimates suggest that over 12,500 short-term rental accommodations operated in central Athens during the summer months.

Increased Occupancy Tax and New Regulations

To further discourage the proliferation of short-term rentals, the government is planning to increase the occupancy tax levied on property owners.

In parallel, the Ministry of Tourism is crafting new regulations to establish minimum operational standards and safety protocols for short-term rental properties.

Hellenic Chamber of Hotels Proposals

The Hellenic Chamber of Hotels has submitted a set of recommendations to the government for short-term rental properties, including:

• Whole property rentals only.
• Room rentals permitted only in the owner's primary residence with the owner present.
• Minimum area of 12 sq. m. for a room and 25 sq. m. for an apartment.
• Mandatory natural lighting, ventilation, and air conditioning/heating.
• Prohibition of basement and semi-basement spaces.
• Maximum of 8 rooms per property, with occupancy limits based on sleeping arrangements (2 beds per bedroom).
• Health and fire safety certification by an engineer.
• Liability insurance.
• Elevator certification for professional use in apartment buildings.

These developments signal a significant policy shift towards prioritizing long-term housing affordability in Athens, potentially impacting the future of platforms like Airbnb in the city.